Fed's Dudley (Voter, Dove): Fed is limited to its ability to resist shocks, unlikely that a significant inflation risk is threatening the US expansion
- A large external shock is now the main risk to the "advancing age" of the US economic expansion. Expansions "don't die of old age"
- Economic expansions usually end when inflation forces the Fed to tighten rates. Below-target inflation lets the Fed avoid tighter policy.
- Key parts of the US economy seem to be in good shape, overall the economy is more resilient to shocks
- Household sector is strong and will help drive more growth, household debt is much healthier than in the past
- Entirely appropriate that Fed policy is still quite accommodative